advo hr gives an overview of upcoming changes in legislation which are due to take place in April 2020.
Outlined below is a summary all the employment legislation due to come into force this year. More detailed information on each will be available closer to the time of implementation.
6th April 2020 – Taxation on termination payments
The Government’s plans to make any part of a termination payment over the sum of £30,000 subject to employer NICs is due to become law on this date. This change was delayed from April 2018.
6th April 2020 – Extension of IR35 to private sector
IR35 tax rules would be extended to the private sector from April 2020. The rules are aimed at reducing tax avoidance for off-payroll contractors working through personal service companies (PSC). Since April 2017, public sector employers have been responsible for deciding whether IR35 applies, and for deducting tax and NICs from contractors’ fees paid through PSCs when it does not. From 6 April 2020, the new rules will also apply to private sector businesses with an annual turnover of over £10.2 million or 50 or more employees.
6th April 2020 – Good work plan: agency workers, annual leave and statement of terms
In the ‘Good work plan’, published in December 2018, the Government made a commitment to abolish a legal loophole known as the ‘Swedish derogation’ in the rules governing the use of agency workers. This allowed agencies to opt out of equalising the pay of agency staff with the permanent workforce when they had been with the same employer for more than 12 weeks, provided they paid the agency workers between assignments. The opt-out will cease on 6 April 2020 when the Agency Workers (Amendment) Regulations 2019 come into force.
The government is also lengthening the reference period for determining an average week’s pay from 12 weeks to 52 weeks from 6 April 2020. The reform is intended to improve the holiday pay for seasonal workers, who tend to lose out over the way it is currently calculated.
A third change will extend the entitlement to receive a statement of ‘written particulars’ (on basic employment terms and conditions) to include workers as well as employees and make it a day one right. Currently employers have up to two months to issue the statement to any employee working for them for more than a month.
Parental bereavement provision
The Bill, which became the Parental Bereavement (Leave and Pay) Act on 13 September 2018, will entitle employees who lose a child under the age of 18, or suffer a stillbirth from the 24th week of pregnancy, to two weeks’ unpaid leave, as a right from day one of their employment. The leave will be paid at the statutory rate if the employee has 26 weeks’ service. The government is aiming for the new law to be in force in 2020.
Employed parents are already entitled to take a reasonable amount of unpaid time off to deal with an emergency involving a dependant, including dealing with a dependant’s death, as a day one right.
Statutory rates are usually increased in April each year. These will be communicated via our Key Facts brochure in April.
If you would like to know more about how the changes impact your organisation or need support on any people-related work issue then you can contact advo hr. In the first instance email one of the experts on firstname.lastname@example.org.